Corzine restores state aid to towns

Gov. Jon Corzine unveiled his final spending cuts yesterday
and Gov.-elect Chris Christie warned the state could run out
of money by March unless even more programs and services disappear.

Hours after it was revealed that Christie's transition
team is compiling plans to slash state agency spending by as
much as 25 percent next year, Corzine released $839 million
of his own current-year cuts, including $260 million to
schools. But the Democratic governor, who leaves office Jan.
19, also delivered a welcome surprise to towns and community
arts groups by lifting a freeze on state aid that had them
scrambling to pay their bills.

That was a reversal for Corzine, who last week said
he'd let Christie decide what aid to dole out.

As he put the final stamp on a term swallowed by the
recession, Corzine said he restored the aid to towns to keep
his commitment to property tax relief -- a main theme of his
failed re-election campaign. He noted his final budget is
now $28.6 billion, $220 million smaller than the year before
he took office.

Christie, though, said he is still inheriting "a
horrible bag of problems" as state revenue flows suffer.

"Understand this: We have in New Jersey a situation now
where in March of this coming year -- if projections remain
where they are -- we won't have the money to meet
payroll," Christie told reporters at Daytop Village, a
drug-rehabilitation center in Mendham. "That's the
level of crisis we're talking about here."

The Republican's transition team has asked cabinet members and agency directors to identify possible cuts ranging from 15 percent to 25 percent -- on top of the cuts imposed by Corzine -- and is urging them to eliminate or consolidate programs, according to a Dec. 18 internal memo The Star-Ledger obtained yesterday....